Accounting Multiple Choice Question – 9 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex the business owner suspects a loss of cash has occurred.

Alex provides the data shown below.

  • cash balance at the start of the month – £150
  • cash balance at the end of the month – £100
  • cash banked – £10,200
  • cash sales for the month – £10,500

How much cash has been lost by Alex?

Select ONE answer:

  1. £200
  2. £250
  3. £300
  4. £350

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct = £150 + £10,200 – £100 – £10,500 = = > £350 loss

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Accounting Multiple Choice Question – 8 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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What is the normal treatment of life membership subscriptions?

Select ONE answer:

  1. credit the income and expenditure account in the year of receipt
  2. credit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure account
  3. debit the income and expenditure account in the year of receipt
  4. debit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure account

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 7 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The balance on a sales ledger control account is £40,000.

The following items are then discovered:

  • total of sales day book understated – £500
  • discounts allowed not entered in sales ledger control account – £1,200
  • bad debts written off not recorded in sales ledger control account – £400
  • provision for doubtful debts – £2,500

What is the total of the balances in the sales ledger?

Select ONE answer:

  1. £37,900
  2. £38,600
  3. £38,900
  4. £41,100

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct = £40,000 – £1,200 – £400 + £500
  4. Not correct

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Accounting Multiple Choice Question – 6 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
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A bank statement shows a credit balance of £8,360.

Comparison with the cash book reveals:

• Cheques totalling £18,725, sent to suppliers, have not been presented.
• Cheques totalling £16,223, received from customers, have not been credited by the bank.
• Bank charges of £124 have not been entered in the cash book.

What is the correct cash book balance?

Select ONE answer:

  1. £5,734 credit
  2. £5,734 debit
  3. £5,858 debit
  4. £10,986 credit

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct = 8,360 – 18,725 + 16,223 (you may want to deduct £124 charges from the bank statement, but such charges would already have been taken off on the bank statement before ascertaining the bank balance of £8,360).
  4. Not correct

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Accounting Multiple Choice Question – 5 January 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
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A cheque for payment of wages of £214 has been debited to the purchases account as £241.

A suspense account is created.

What are the correcting entries?

Select ONE answer:

  1. account to be debited £ – purchases 214 + suspense 27 & account to be credited £ wages 241
  2. account to be debited £ – wages 214 & account to be credited £ suspense 214 + purchases 0
  3. account to be debited £ – wages 214 + suspense 27 & account to be credited £ purchases 241
  4. account to be debited £ – purchases 241 & account to be credited £ wages 214 + suspense 27

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.